Financial automation: accelerating processes and reducing costs
Posted: Sun Jan 19, 2025 9:59 am
When a company carries out a large volume of transactions on a daily basis, financial automation is essential to increase control and facilitate management.
This process does not allow for errors, as a small error can cause major problems in the future. Correcting this problem takes time, and the longer it takes to identify the cash flow difference, the greater the risks.
This fear drives companies of all sizes to find student database solutions – and this is where financial automation comes in as a great ally.
What is financial automation?
Financial automation is the automation of a company's economic resource management. Its main objective is to align and standardize processes, from operational and routine activities to collection policies and reporting.
As transaction recording is daily and automatic, the information tends to be more objective and transparent.
Furthermore, it becomes easier and faster to generate payment slips, identify titles, consult and reconcile values, for example.
Why automate financial processes?
Let's answer this question with a reflection: what is the role of the financial sector?
“ Control the money ,” an entrepreneur would say.
“ Reduce costs ” would be another answer.
In fact, the financial area is as responsible for the strategy and competitiveness as the marketing and sales teams . After all, the analyses carried out by the financial area guide the company's entire operations.
If processes are truncated, if response time is slow, this will be reflected in the business.
By collecting information quickly and accurately, financial automation offers valuable data for decision-making.
Information such as sales seasonality, defaulting customers and period profitability are easily collected.
This way, your company becomes more agile and intelligent than the competition.
Sounds great, don't you think?
How should this be done?
Let's say the above words were very convincing and now you want to invest in a financial automation system.
What's the next step? How to automate financial processes? Is it just a matter of buying and installing the ERP?
No!
To acquire a financial management system, you must prepare the ground – and this will be done in the following way:
1. Mapping
The first step is to map out all the processes that involve the finance department. Evaluate which currently manual operations could benefit from automation.
2. Digitization
The next step is to migrate financial information from paper to the digital environment – except for information that really needs to be printed and archived offline.
3. Integration
Last but not least, there is integration. Here, you will connect the management software with other systems used by your company. Your bank account software is one of them, for example.
There is not much of a secret at this stage, as most financial management tools already offer the integration option.
This process does not allow for errors, as a small error can cause major problems in the future. Correcting this problem takes time, and the longer it takes to identify the cash flow difference, the greater the risks.
This fear drives companies of all sizes to find student database solutions – and this is where financial automation comes in as a great ally.
What is financial automation?
Financial automation is the automation of a company's economic resource management. Its main objective is to align and standardize processes, from operational and routine activities to collection policies and reporting.
As transaction recording is daily and automatic, the information tends to be more objective and transparent.
Furthermore, it becomes easier and faster to generate payment slips, identify titles, consult and reconcile values, for example.
Why automate financial processes?
Let's answer this question with a reflection: what is the role of the financial sector?
“ Control the money ,” an entrepreneur would say.
“ Reduce costs ” would be another answer.
In fact, the financial area is as responsible for the strategy and competitiveness as the marketing and sales teams . After all, the analyses carried out by the financial area guide the company's entire operations.
If processes are truncated, if response time is slow, this will be reflected in the business.
By collecting information quickly and accurately, financial automation offers valuable data for decision-making.
Information such as sales seasonality, defaulting customers and period profitability are easily collected.
This way, your company becomes more agile and intelligent than the competition.
Sounds great, don't you think?
How should this be done?
Let's say the above words were very convincing and now you want to invest in a financial automation system.
What's the next step? How to automate financial processes? Is it just a matter of buying and installing the ERP?
No!
To acquire a financial management system, you must prepare the ground – and this will be done in the following way:
1. Mapping
The first step is to map out all the processes that involve the finance department. Evaluate which currently manual operations could benefit from automation.
2. Digitization
The next step is to migrate financial information from paper to the digital environment – except for information that really needs to be printed and archived offline.
3. Integration
Last but not least, there is integration. Here, you will connect the management software with other systems used by your company. Your bank account software is one of them, for example.
There is not much of a secret at this stage, as most financial management tools already offer the integration option.